Turkey�s textile hub hopes to recoup losses from Russian crisis

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July 07, 2015 Despite a major drop in the Russian business that is integral to Turkey's textile industry, the sector is hopeful that it will make up for its losses in the coming season, according to statements from industry leaders.

�In the past year and a half we have experienced a serious Russian-based crisis. We have confronted the economic difficulties that have arisen from this crisis, and in the last few months they have been diminished. Russia is bouncing back, and in the upcoming season we anticipate, at the very least, the compensation of a large portion of our losses,� said Laleli Industrialists and Businessmen's Association (LASİAD) Chairman Giyasettin Eyy�pkoca, speaking at an iftar dinner arranged by the association late last month.

The Laleli quarter of İstanbul is known as a hub of the country's textile sector, as hundreds of shops sell clothing products at the retail and wholesale level to mainly Russian buyers. The area has a decades-long history of customers from Russia and from other former Soviet states purchasing textile products to sell in their home countries. Eyy�pkoca said the fourth annual Laleli Fashion Shopping Festival is slated to kick off in August, adding that last year's festival was attended by buyers from 27 countries.

Speaking after Eyy�pkoca, the chairman of the İstanbul Textile and Raw Materials Exporters' Union (İTHİB), İsmail G�lle, shared similar sentiments.

�We are noticing improvements relating to Russia. Our biggest exporting problem is when prices fall as sales increase. In the second half of this year we believe that this situation will improve. It's not easy: In around one year we've gone through three elections. God willing, a new government will be formed, and with that new government, we can move forward with new projects prioritizing growth in exports, employment and industry,� G�lle said.

According to figures from the Turkish Exporters Assembly (TİM) from earlier this year, exports bound for Russia declined 43 percent between January and April, compared to the same period in 2014. The biggest factor contributing to the major drop stemmed from losses in the ready-made clothing sector, according to exporters.

Economic sanctions imposed on Russia after its annexation of Crimea, in conjunction with the devaluation of the ruble, have created a major crisis for the Russian economy. The Russian crisis has spilled over into Turkey, particularly affecting the textile and tourism sectors, as large numbers of Russians on vacation are known to flock to Turkey's southern provinces. A number of reports indicating that the tourism sector is reeling from a decline in the number of Russian visitors that it normally depends upon during the summer season have recently been published. Losses in the billions of dollars are expected to pile up this year as Russians have tightened their belts, causing hoteliers to slash prices and the industry to appeal to local tourists in an effort to rejuvenate the sector.

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